Norfolk Gazette And Publick Ledger

FOR THE PUBLICK LEDGER

A General Meeting of the Stockholders in the Farmers' Bank of Virginia, is called on the 8th of next month, the object of which is avowed with a candor, that is more commendable, when compared with the manner in which the measure complained of, was adopted. The parties are at issue, the subject should come fairly before the public, and that is intended by this communication. The avowed object of the meeting is, to annul a regulation, by which the departments are directed to make monthly returns of all individual accounts to the Bank of Richmond. Before any comment is made, it may not be without use, to give some account of the regulation. At the first meeting of the Stockholders of the Bank, a gentleman of Richmond, made a motion for a resolution that the Departments should make monthly returns of all individual accounts to the Bank at Richmond; to this proposition a gentleman from Norfolk offered an amendment, which would, if adopted, have made the returns reciprocal; the fairness and justice of the amendment were so obvious, and the temper of the meeting so evidently in favor of it, that the original resolution was withdrawn, and the amendment followed it. Some time after, the Directors at Richmond undertook to make a regulation by which the returns were to be made as before stated; but, as if aware that they had transcended their powers, (and of which there is no doubt) they got the measure sanctioned, as it is said, by the Stockholders. It has been remarked, that at the first meeting, which was very numerous, this measure was brought forward and abandoned: the meeting of the Stockholders who sanctioned the proceeding of the Directors at Richmond, was composed of seven persons, one of whom voted against it. This, it is believed, is a true account of this regulation.

When the Charter of the Farmers' Bank is examined, it will be seen that the Departments are independent of the Bank at Richmond, whose Directors have no more control over the operations of the Departments than they have over the Departments of the Bank of Virginia; they cannot augment or diminish the capitals, they cannot elect or remove a Director, or an officer of the Departments. For obvious purposes, the Bank at Richmond issues Notes for the Departments; returns of the profits of the Departments are made to that Bank, in order that dividends may be made. The Bank at Richmond, and the Departments, are, in the view of the act of incorporation, independent Banks. It does not therefore appear reasonable, that statements of the particular accounts of all the customers of the Departments, should be exhibited to the Bank at Richmond, while that Bank, in a fancied supremacy, withholds similar information respecting its customers, from the Departments. These returns cannot be wanted for any legitimate objects, unless that the Directors at Richmond may, from seeing the accounts from all the Departments, discover that certain individuals are more indebted to the Bank, than is consistent with its interests. Having made this discovery, all that the Directors at Richmond can do, is to notify the fact, for they cannot order any account at a Department to be reduced. If the interests of the Bank require, that the Directors at Richmond should know the state of every person's account in Norfolk, its interests equally require, that the Directors at Norfolk, and the other Departments, should know the state of every person's account at Richmond. Nor does it appear that any objection can be made to this reciprocity, unless it is conceded that the superior wisdom and impartiality of the Richmond Directors, render it unnecessary: it is however possible, that the Directors of the Departments, might furnish some information touching an account at Richmond, which from some cause or other had escaped the vigilance of the Directors of the Bank at that place.

It is hoped that the Stockholders will not countenance this measure, against which many objections could be urged, if it was not desirable to avoid observations that might not be agreeable to the feelings of all. This proceeding is not sanctioned by precedent, unless that of the Bank of Virginia, which was adopted about the same time, be called a precedent. The late Bank of the United States, the administration of whose affairs extorted the praise of its enemies, never required such returns from its Departments, although they were created by the Parent Bank, who could discontinue them at pleasure, augment or diminish their capitals, and appointed their Directors and Cashiers. It is not intended to give any opinion as to the expediency of making these returns, but if they are to be made, it is hoped that the Stockholders will make them reciprocal, to which the independence of the Departments presents the fairest claim.

A Stockholder in the Farmers' Bank.